China Spygate: Arrest of Huawei CFO

Canadian officials arrested Huawei’s CFO, Meng Wanzhou, for allegedly violating sanctions against Iran. Canada claims they did so at the behest of the US and extradition will follow.  But no one in the US seems to have a clue who ordered the arrest, and given that arrests for sanctions violations have never been conducted by the US, the entire scheme seems more than a bit odd, if not a setup, if not falsely reported.

Typically, charges for violations are brought by the Justice Department and involve heavy fines – not arrests.  In this case, HSBC was the favored means of laundering according to reports.  HSBC has a history of laundering with the dubious honor of holding the largest sanctions fine as of 2012 at $1.3 billion as part of a prosecution agreement and $665 million in civil penalties.   At the time, the customers included Cuba, Iran, Libya, Sudan and Burma.  No individual was prosecuted.  In 2014, BNP beat the previous honor and agreed to fork over $8.9 billion in penalties after admitting to laundering transactions involving Iran, Sudan and Cuba.  NO prosecution of individuals ensued.

Bolton has claimed he was both aware in advance – and unaware of the arrest.  Trump was most emphatically unaware, which begs the questions who, why, and how?

The announcement was parlayed on the same day that Trump announced progress in trade talks with China’s Xi Jinping.  And thus alludes to the belief that the arrest was an attempt to defrock the positive and tank the stock market.   China has been relatively quiet, Xinhau News making no comment today, and yesterday relaying a press release that was the only press release available to all media outlets.

Canada has released partial information given a ban on media was requested and granted on Ms. Wanzhou’s request.   According to the Canadian government, they state that Wanzhou, who is ‘Chinese’ is suspected of working for the Chinese government and is a spy.  Which would make the Iran sanctions violation a distraction over the real reason for the arrest.

Ren Zhengfei, founder and President of Huawei Technology, is Wanzhou’s father.  Ren was a member of the Peoples Liberation Party where he worked in the military division as an IT Researcher.  He later joined the Communist Party of China.

Due to his military and Party affiliations, India felt Huawei presented a security concern and barred them from winning particular contracts.   Other countries have made similar security concern comments, but no one – did anything.   Huawei’s attempt to buyout US 3Com was forcibly collapsed due to spying concerns.   They have been on the radar and skated.

Hauwei manufactures telecommunications equipment, smartphones, and networking equipment.  Allegations have arisen that its equipment could contain ‘backdoors’ allowing unauthorized surveillance by the Chinese government and the PLA.  The company response was that their equipment posed no greater threat than any other company – which is legal speak for ‘everyone’s doing it’.  As such, miffed, August 2018, they stated that they would pull out of the US market.  Not quite so easily done.

Huawei is enmeshed in various partnerships with:  Motorola, T Mobile, Honeywell, GE, Deutsche Telekom, Groupe PSA, Symantec, Siemens and others.  Well ingrained in equipment throughout the world, it has overtaken Apple in sales of smartphones and is well on its way to being one of the top five cloud computing companies.

Obviously the Iran sanction violation is a media distraction.  The gag order is being contested.  But given the fact that China is actually being relatively silent regarding the entire situation would indicate that they know considerably more.

The arrest might also be a different backdoor – a bargaining chip…

For an arrest to have been made, evidence of the allegations would be necessary.  The Justice Department is currently head by Acting Attorney General, Matthew Whitaker, hardly a light weight.   He is an avid Trump supporter, and faithful to draining The Swamp.

The media has claimed that William Barr heads the list for Trump’s pick for Attorney General, however whether Barr wants the nomination is unclear and confirmation could easily take months, thereby giving Whitaker reign on the possibility of China spygate.

Tariffs anyone?

 

CHINA Economy Spiraling! Germany Stalling! US Economy Flying!

China’s stock market has slid nearly 23% in one year.   While some economists would shout out Trump and the trade was as the causal factor, the downward trend began six months before the trade war began.  And it isn’t looking likely to shift anywhere positive. Estimates put a $5 trillion devaluation on Asian companies over the last year.  And while some economics point to a thriving housing market as a vestige of prosperity – think again.

Property speculation has been huge in China with short term flips of entire apartment buildings generating new millionaires.   It was easy money, until it wasn’t.

Developers are dropping prices by as much as 20-30%.  The flippers are caught in the middle with massive loans and a panic is brewing.  Property protests are the new norm and property owners are demanding companies compensate for the rapid decline.

While government data suggests the property market is up 7%, reality begs a completely different picture. Where does the truthful information generate from – blogs.  Economists and banks are more concerned with blocking the information given a panic could spiral China’s fragile economy out of control.

China’s largest developer, Vanke, actually compensated property owners with cash and new vehicles in an effort to quell the protests after their decision to drop prices by 33%.  Vanke’s Chairman Yu Liang told staff last month that “survival” was the ultimate goal for the developer over the next year, adding that the property market’s “turning point has really arrived.”

The concern is that the heavily indebted developers could go belly up creating a banking crisis.

When Trump initiated the tariff dispute, the economic fragility of China was known.  He put President Xi Jinping in a precarious position, and Xi Jinping fell into the hole of ego.   It has long been the consensus that China never reveals true numbers, manipulation has been the norm.  But Trump is a businessman, and caught off guard, Jinping did not know how best to negotiate and instead created a greater downward spiral.

Germany too is seeing the results of their refusal to bargain.   Add to the tension that Merkel took a lone stand in tabling trade with Saudi Arabia as the Khashoggi death is unwound, Germany’s economy splintered further.  Germany faltering translates to an EU spiraling.  German banks are also testing economic stability as fraud and corruption is revealed among the bigger Deutsche Bank and Commerzbank and stiff fines are sure to contract profits.

And while German trade continues to ramp a surplus, it comes at a cost to every other EU member who rely on their exports, i.e. Germany’s imports, to keep their heads above water.   Germany has become exactly what they accuse the Trump administration of adhering to – ‘Nationalism’.  Willing to let their EU partners stumble and fall, Germany is looking to support one country – Germany.

Like China’s Xi Jinping, Merkel is in a hole of ego.  Having no business acumen, she is at a loss of how to respond, how to negotiate, how come to the bargaining table.

By contrast, the US economy is growing and strong.  Reinvented by policies of individual and corporate tax reductions, legislation reducing regulations, and energy production, the Trump guidebook is working.

Slaying the demons with a sword in one hand, Trump inspires and reignites hope and faith with his Olympic torch in the other hand.  We know it is working when the barbs fly relentlessly.  We know it is working when every MSM plugs a slew of defamation that has no basis.  

We know it is working because the numbers don’t lie.

Ashton Carter – Theoretical Physics Does Not Win Wars

So Ashton Carter is ruffled. His bristles are suddenly directed at Russia and China. Russia because they are showing a better tactical gain in Syria and that makes Obama look bad, and China because Xi Jinping doesn’t give a hoot what Obama thinks about the South China Sea, and that makes Obama look like a weakling.

Who is Carter and where does he hail from? Harvard of course, not unlike a good many of the World Order eminences. What did he do before being Secretary of Defense? He was head of all procurements overseeing over $600 billion per year. WOW! Uh-oh wait,  you mean the guy who lost billions in funds, the guy who allowed billions of waste and mismanagement, the same guy who built fortresses of sand that later melted and returned to dust, the guy who built a $43 million gas station, the exact same guy who was responsible for the corruption and fraudulent waste in our government defense spending? And today, we find that DHS, whose budget is the foreshadow of Ashton Carter has spent a bedazzling $1billion to digitize one document.

Yeh, that guy.

That’s the same guy who is now putting Russia and China on an alert pedestal as being more evil than ISIS. Of course we need to understand that this man has never actually served in the military – ever. He has no military background at all, but he does have a prestigious degree in Theoretical Physics. What is that? Well, it’s a branch of physics in which theorems are used to predict outcomes. So, if I spend $1 billion to digitize a document, the theory would state that I get in trouble, but the mathematical chances of getting caught are …whatever.

Still, his dire warning with respect to Russia and China is in their refusal to voluntarily join in the New World Order. That’s what makes these countries targets.   And he’s so miffed, Carter is going to tell the world they are bad, and we need to make sure every tabloid in the country says so.  In fact, that’s exactly what makes them fearsome, they will not cave.

Where did Carter come from? He previously worked for the Aspen Strategy Group, a subsidiary of the Aspen Institute which is a Soros funded and operated institution. Their stated purpose is to direct what policy makers in DC decide to do…er, that’s code for they tell all the idiots how to vote and what to say because they haven’t a brain to work on their own. In addition, Carter is/was on the board of the Council on Foreign Relations, a liberal membership organization, ‘think tank’, whose distinguished members include Hillary, Bill and Soros. Ta-Da!   Other interesting members include the Carlyle Group, and odd names like Warren Beatty, Priscilla Presley, George Clooney and Katie Couric??? I imagine these are the press arms that report what they are told to report, think like they are told to think, and maneuver like robots when told to act so. A motley crew that like to think they are going to be included in the New World Order to be sure and grovel under the wings of Soros.

Carter also formerly served as a consultant to Goldman Sachs advising them in technology and defense, and served as a consultant for MitreTek Systems, advising them on international affairs… Seems a bit odd to me. Like providing insider information to an investment firm? Let’s not forget this guy is a physics major, non-military, advising on military tactics to a company that makes market selections for clients like – maybe Carter and Clinton? And we wonder why we’re losing against ISIS?

It also speaks to why more and more we find the ideals ingrained in Putin and Xi Jinping quite powerful, not because we necessarily agree with them, but because in their hearts they are nationalists. They believe in their country. They believe in their people. And that belief is a powerful fragrance that seems lost in the US, Canada, UK and most of Europe where leadership is about hob-nobbing, porn, lying, cheating, and throwing your country to the wolves. We can respect integrity.

History: In WWI, the allies included Russia, Britain, France, Italy, US, and most of Europe. The bad guys were Germany and the Ottoman Empire. The country that lost the most lives and suffered the greatest casualties was Russia. France came in second.

In WWII the allies were again Russia, US, UK and China! The bad guys were Germany, Austria, and Italy. The country that lost the most lives was Russia, then China, then Poland! We won these wars because of our allies! And now we demonize those allies and hail great laudings upon our former foes.

It truly is a topsy-turvy world in which we no longer know who is good, who is bad, who we should fear.

And I imagine that is why the propaganda the media blathers hourly is so filled with disinformation even they don’t have a clue what is up and what is down any longer. They operate like marionettes and don’t seem to mind much as long as the promised land is pledged to them…

We are a powerful force when we choose to be. But when led by mutant generals and commanders who lack fundamental ethics and integrity, well, we lose.  The outcomes of Vietnam and Korea would serve as evidence of their blundering intelligence and their allegiance to politics and politicians instead of to man and to country. Their core is rooted in ego, and is rotting in political power dung.

Just saying’…